Swiss gold exports climbed to the highest level this year and flows from the U.K. suggest Swiss refineries are working at full capacity to meet demand from Asia, UBS Group AG said in a note today. Trading of the Shanghai Gold Exchange’s benchmark bullion spot contract advanced to the highest since April 2013.
“Physical demand was healthy,” David Govett, head of precious metals at Marex Spectron Group, said in an e-mailed note. “This will keep a floor under gold for the rest of the month.”
Gold for for February delivery rose 0.7 percent to $1,203.30 an ounce on the Comex by 8:03 a.m. in New York. Bullion touched $1,182 yesterday, the lowest since Dec. 1, before closing little changed on the day. Futures trading volume was 19 percent higher than the average for the past 100 days for this time of day, according to data compiled by Bloomberg.
The metal for immediate delivery gained 1.2 percent to $1,203.74 an ounce in London trading. Bullion fell in London yesterday amid concern that the Federal Reserve is moving closer to raising interest rates, cutting the metal’s appeal as a store of value. Fed officials dropped a pledge to keep borrowing costs near zero percent for a “considerable time,” replacing it with a promise to be “patient.”
Switzerland exported 232.3 metric tons last month, government data showed today. India, China and Hong Kong accounted for 63 percent of the overseas shipments.
Silver for delivery in March on the Comex added 0.8 percent to $16.06 an ounce. Platinum for January delivery on the New York Mercantile Exchange advanced 0.6 percent to $1,207 an ounce and palladium for March delivery gained 1.4 percent to $790.
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